Job Payment

[Bob Shoaff]

OK. Here is a question on the green stuff (money not grass). Say for conversation sake you bid a job at $10,000.00. Half is labor and half is materials. Does anyone require any up front money from the customer? Do you set a limit as to how big of a job you do without asking for money up front? And last, does anoyone let customers do like a 90 day payment plan? The first question is what really interests me. It sucks if you do a big job, pay for all the materials then bust your butt, do a great job and then have the customer say, I had something come up and cannot afford all of this at once. Then that leaves you having to pay your creditors and working out a deal to get payment. Just curious on what others are dealing with. I hope I explained that all ok. Any thoughts would be appreciated.
Thanks,
Bob

[jaclawn]

If it is a regular customer, and not a whole lot of money, I will front the materials and collect the total on completion.

If it is a larger sum of money, or a new customer, I will get at least enough to cover the materials up front, before any work is started.

If they have something "come up" and can't pay when due, I will allow them to make payments, with intrest. You really have to be agressive on this one though. Don't let them get even one day behind.

[bobbygedd]

we require one third before we start, then balance due upon completion. we have arranged payment plans only a couple of times, but this was for customers we knew for a couple of years. we dont offer payment plans regularly.

[cos]

Usually we ask for 50%. I have talked to many others I know and they say 50% is the norm.

[Skookum]

I have always covered my total costs up front on jobs. So if is 33.3% or 50%, make sure it covers your outlay. This way I figure all I can lose is my time.

[Chip]

I always collect a deposit that is enough to cover materials. This is usually at least half the total and collect balance upon completion. I have this written in my contracts. Havn't had too much trouble collecting. Had to send a lawyer a reminder on an insurance job, but was paid within 5 days of notice.

[Bob Shoaff]

Would anyone be willing to share a copy of your contracts you use?
Thanks,
Bob

[Eric ELM]

Most business places, carpenters, plumbers, electricians, ect. ask for at least 50% down. I think it is pretty much a standard for a bigger job.

Eric

[kutnkru]

If the bid was for $10,000 I would collect $4,000 prior to work commencing. Lets say the job was going to be on a three week construction schedule. After the second week I would collect another check for $3,000. Upon completion of construction and final approval of the site, I would then collect the final $3,000.

Hope this helps.
Kris

[bob]

The biggest landscape job I do runs around $2500. I don't ask for any up front money.

[kutnkru]

If I was going to work with a customer for 90 days deferred I would first assess whether or not I could forgo the funds for that amount of time.

If I was going to take on a twelve week payment scedule, I would request 40% up front and then break the rest down over the twelve weeks.

I would also put a clause into the contract that if a payment is missed, the FULL balance would then become due.

Hope this was what you were asking about.
Kris

[cclllc]

I always add a clause in the contract :
Payment due at end of job completion.If they couldn't of afforded it they shouldn't of signed the contract.If they are regular customers that I trust I don't require up front
money.

[mowerman90]

Make sure you spell out the specifications in a proposal so that you both know what to expect. BOTH parties should sign it and receive a copy. It's the only way of protecting yourself if they decide to bail on you. If you don't have a contract or signed proposal and you have to go to court to collect, it's your word against his and remember that he's the homeowner and you're just the lowly lawnboy. I'm normally a little leary when a customer asks for 90 day terms. I tell them to put it on a credit card, that way you get your money, and they can take as long as they want to pay it, but they shouldn't ask you to be the bank for them. If you aren't set up to take credit cards go to http://www.paypal.com and set up an account, it's free.

[Ssouth]

All of my annual accounts are billed monthly. Anything extra goes on to their bill no matter how much. Anyone who is not a regular customer pays when the job is completed. So far I've never had to ask for money up front and never even though of it as an option. From what I've read above, I might start asking for 1/3 up front for non-regular customers. Thanks for posting the question Bob, Why not get some money up front if you can. It would help out a lot. Saying that I will never charge an annual account up-front money. Only having to pay once a month is one of my big selling points to potential annual contracts.